Term Sheet for Supply Agreement

When it comes to supply agreements, a term sheet is an essential document that outlines the key terms and conditions of the agreement. It serves as a guide for both parties involved in the agreement, providing clarity on their rights and obligations.

A term sheet for a supply agreement should cover the following key points:

1. Description of the Goods: This section should provide a detailed description of the goods being supplied, including the quantity, quality, and any other specifications related to the products.

2. Price and Payment Terms: The term sheet should clearly outline the price of the products, including any applicable taxes, and the payment terms, such as the payment due date and the payment method.

3. Delivery Terms: This section should cover the delivery terms, including the delivery method, the time and place of delivery, and the party responsible for the cost of delivery.

4. Warranties and Representations: The term sheet should also include warranties and representations made by both parties. For example, the supplier may warrant that the products are free from defects and comply with all applicable laws and regulations, while the buyer may represent that they have the authority to enter into the agreement.

5. Intellectual Property Rights: If the products being supplied include any intellectual property rights, such as patents or trademarks, the term sheet should outline the rights and obligations of each party with respect to those rights.

6. Termination and Dispute Resolution: The term sheet should also cover the termination provisions, including the circumstances under which the agreement may be terminated, as well as the dispute resolution process in case of any disputes.

In summary, a term sheet for a supply agreement is a crucial document that ensures both parties are on the same page and can work together effectively. It provides clarity on the key terms and conditions of the agreement, and serves as a guide for both parties throughout the term of the agreement. As a result, it is essential to ensure that the term sheet is comprehensive and covers all relevant aspects of the agreement.